Forex technical analysis: USDMXN breaks higher, but can it stick?
Support at 100 day MA....
The USDMXN has been scraping against the 100 day MA all this week. That is on the downside.
On the topside, the 200 hour MA has seen the price scrap against it (green line in the chart above) - UNTIL today.
The price moved above the 200 hour MA today and there was a move higher. The move took the price toward a swing level around the 20.5360 area (see red circles). That is the problem for the buyers. Those next targets (including the 100 bar MA on the 4-hour chart) could not broken.
The "problem" for the bulls now becomes a bigger problem if the level that WAS resistance, become resistance AGAIN. That is the price moved back below the 200 hour MA.
We are heading lower and approaching that MA line. It might be too late from a Friday afternoon trade, but going forward, that MA line will be the line to watch next week (potentially). Add, the 20.5359 and the 100 bar MA on 4-hour chart at 20.5635 as the next key levels on the topside. Be prepared.